Argument: Public insurance will be paid for by taxes on businesses
Carl Gipson. "Public option a poor choice for small businesses." Port Orchard Independent. Aug 06 2009: "No one knows how much this public option will cost. Some estimates peg the ten-year cost at $1.7 trillion. And that’s being optimistic.
When the government introduced Medicare in 1965, the estimated cost to the taxpayer by 1990 was supposed to be $9 billion.
In reality, the cost was $67 billion — a seven-fold miscalculation.
So what happens if this public option ends up costing just three times as much as estimated?
That’s a 10-year cost of $5.1 trillion to taxpayers.
How will we pay for it? Through tax increases.
Several policymakers are already proposing new taxes on energy, new sin taxes, increasing the national debt, or ditching some tax exemptions (including charitable donations) or taxing health care benefits in order to pay for the new option.
If the proposed system is big enough and expensive enough, there is no chance the middle class and small business owners can escape paying these higher taxes to support this new entitlement."
"The End of Private Health Insurance". Wall Street Journal (editorial). April 13, 2009: "Mr. Obama's proposal would be open to everyone and necessitate a huge permanent increase in government spending as a share of the economy. Medicare and Medicaid alone account for 4% of GDP today and will rise to 9% by 2035, according to the Congressional Budget Office. CBO estimates that individual and corporate income tax rates would have to rise by about 90% to finance the projected increase in spending through 2050 -- without the new middle-class entitlement."